A private placement is the distribution of shares to a limited number of institutional investors rather than through a public offering.

Question

Quizplus · Accepted Answer

A private placement is a type of securities offering in which shares are sold to a small group of institutional investors, rather than through a public offering. This small group of investors is typically composed of wealthy individuals, mutual funds, pension funds, or other large financial institutions, and the shares are not sold to the general public. Private placements are often used by companies to raise capital without the cost and regulatory requirements of a public offering.

A Private Placement Is the Distribution of Shares to a Limited